How Arista Networks Stock Gained 90%

October 23rd, 2025 by Trefis Team
ANET: Arista Networks logo
ANET
Arista Networks

Arista Networks (ANET)’s stock surged nearly 90%, propelled more by soaring investor optimism than just sales gains—a 65% P/E jump hinting at excitement beyond numbers. With strong earnings, a bold acquisition, and AI networking’s rise amid mounting Nvidia rivalry, there’s much more driving this rally.

  4252025 10222025 Change
Stock Price ($) 77.9 146.6 88.2%
Change Contribution By LTM LTM
Total Revenues ($ Mil) 7,003.2 7,951.0 13.5%
Net Income Margin (%) 40.7% 40.9% 0.4%
P/E Multiple 34.4 56.6 64.5%
Shares Outstanding (Mil) 1,260.3 1,256.3 0.3%
Cumulative Contribution 88.2%

So what is happening here? The stock jumped 88%, driven mainly by a 65% boost in P/E multiple, alongside a 14% rise in revenue and a modest 0.4% margin gain. Let’s dive into what fueled this momentum.

Before we get into details of events that led to stock surge, here is what market wisdom says: Single stock can be risky, but there is a huge value to a broader diversified approach. Strategic asset allocation and diversification helps you stay invested. Did you know investors who panicked out of the S&P in 2020 lost significant upside that followed? Trefis High Quality Portfolio and Empirical Asset Management’s asset allocation approach are designed to reduce volatility so you can stay the course.

Here Is Why Arista Networks Stock Moved

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  • Strong Q2 2025 Earnings: ANET reported Q2 2025 EPS of $0.73, beating estimates of $0.65. Revenue was $2.20B, up 30.4% YoY.
  • Raised FY2025 Guidance: Following strong Q2 results, ANET raised its 2025 annual growth target to 25%, aiming for $8.75B revenue.
  • VeloCloud Acquisition: On July 1, 2025, ANET acquired VeloCloud SD-WAN from Broadcom, enhancing AI-driven enterprise products.
  • AI Networking Demand: Strong customer demand from hyperscalers like MSFT and META drove AI networking growth.
  • Nvidia Competition Rises: Nvidia won AI networking deals with Oracle and Meta, causing ANET stock to decline 7.1%.

Our Current Assesment Of ANET Stock

Opinion: We currently find ANET stock attractive but volatile. Why so? Have a look at the full story. Read Buy or Sell ANET Stock to see what drives our current opinion.

Risk: A good way to gauge risk is by checking how much ANET has fallen during major market stress. It dipped about 44% in the 2018 correction, roughly 34% during the Covid pandemic sell-off, and nearly 38% in the inflation shock period. Even with solid fundamentals, the stock has shown it’s not immune to sharp losses when broader markets turn south. So, while ANET has its strengths, investors should keep these sizable drawdowns in mind.

Picking winners on a consistent basis is not an easy task – especially given the volatility associated with a single stock. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.